Bitcoin traders are increasing short positions as funding rates stay negative, even while spot demand and Coinbase premium begin to recover.
Bitcoin has climbed back above the $70,000 level, yet confidence in the recovery remains limited. Many investors still question whether the move can develop into a sustained rally. Global macro tensions and instability across financial markets continue to cloud the outlook. As a result, derivatives traders appear reluctant to adopt a bullish stance.
Binance Funding Rates Signal Growing Short Pressure on Bitcoin
For now, few investors seem convinced that Bitcoin’s rebound marks the start of a lasting uptrend. Ongoing geopolitical tensions, particularly around global oil trade, continue to weigh on financial markets. In such an environment, risk appetite often weakens, which tends to limit the performance of volatile assets like Bitcoin.
🗞️ Market disbelief grows while Bitcoin holds above $70K
For now, few investors seem to truly believe in a sustained bullish recovery for BTC.
The geopolitical and macroeconomic backdrop remains unfavorable, particularly with ongoing tensions surrounding global oil trade.In… pic.twitter.com/32UOlrzLkN
— Darkfost (@Darkfost_Coc) March 13, 2026
And as such, bearish positioning has become common even while BTC trades above $70,000. Derivatives market data offers a clear view of this sentiment, especially through funding rates on Binance.
Funding rates determine which side of the futures market pays the other to maintain positions. Negative funding means short sellers dominate the market, while positive funding reflects stronger demand for long exposure.
Recent trends show that traders continue to position for downside risk. Since the beginning of March, many market participants have treated price rebounds as opportunities to open short positions.
According to Darkfost, an analyst at CryptoQuant, this behavior has pushed Binance funding rates into negative territory for roughly a week. Persistent negative funding suggests that derivatives traders remain skeptical about the durability of Bitcoin’s recovery.
Some readings have even reached extreme levels. On March 10 and 11, for example, funding rates on Binance dropped below −0.006. Such levels usually reflect heavy short exposure across the futures market.
In practical terms, most open positions now lean toward the short side. Many traders continue to doubt that Bitcoin can maintain upward momentum under current macro conditions.
Futures Leverage Declines Sharply as Coinbase Premium Turns Positive
Derivatives data shows that the market has already gone through a notable deleveraging phase. According to data, there has been a sharp decline in aggregate Bitcoin futures open interest.
Across exchanges, futures open interest previously exceeded $45 billion. Recent figures now place it closer to $23 billion. This drop suggests that a large portion of speculative leverage was cleared during the recent correction.
Image Source: CryptoQuant
Lower leverage often alters the market structure. With fewer highly leveraged positions in place, price movements can become more sensitive to fresh demand. Meanwhile, signs of renewed spot demand have begun to appear. Activity on U.S. exchanges suggests that some buyers are returning to the market.
Coinbase’s Bitcoin Premium Index recently moved back into positive territory. This metric tracks the price difference between Coinbase and other major exchanges.
Image Source: CoinGlass
A positive premium typically signals stronger buying activity from U.S.-based investors. Institutional participants often account for a large share of trading on Coinbase compared with offshore platforms.
Such conditions create an interesting setup. While derivatives traders remain heavily short, spot demand appears to be slowly returning. History shows that strong market consensus often forms late in a move. When too many traders position in the same direction, markets can shift against that positioning.
